FX.co ★ Technical Analysis of GBP/USD for April 29, 2021

The GBP/USD pair rose after the FOMC decision, for that the trend is still trading above the spot of 1.3896 - 1.3900.

The one-hour chart is more upbeat for pound/dollar bulls.

Today, the GBP/USD pair has broken resistance at the level of 1.3896 which acts as support now. Thus, the pair has already formed minor support at 1.3896.

The strong support is seen at the level of 1.3862 because it represents the weekly support 1.

Momentum remains to the upside while the recent upswing has pushed cable above the 100 Simple Moving Average (EMA), while the Relative Strength Index (RSI) remains below 70 – outside overbought conditions. So, the RSI and the moving average (100) are still calling for an uptrend.

Resistance awaits at 1.3944, which is the fresh swing high. It is followed by 1.4008, last week's peak, and then 1.4068, (R2).

Therefore, the market indicates a bullish opportunity at the level of 1.3896 in the H1 chart. Also, if the trend is buoyant, then the currency pair strength will be defined as following: GBP is in an uptrend and USD is in a downtrend.

Buy above the minor support of 1.3896 with the first target at 1.4008 (this price is coinciding with the ratio of 100% Fibonacci, top, last bullish wave), and continue towards 1.4068 (the weekly resistance 2).

On the other hand, if the price closes below the minor support, the best location for the stop loss order is seen below 1.3826; hence, the price will fall into the bearish market in order to go further towards the strong support at 1.3784 to test it again.

Furthermore, the level of 1.3715 will form a double bottom.

Support is at 1.3826, which held GBP/USD back earlier this week. It is followed by 1.3784, 1.3715 and 1.3700.